Bonds Sale G.O. $7,305,000
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MEMORANDUM
March 15, 2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Set Date of Sale of General Obligation Bonds
Finance Director Kenneth J. TeKippe recommends City Council approval of the
proceedings to direct the advertisement of General Obligation Bonds for sale, in the
aggregate principal amount of $7,305,000, and to approve the form of Notice of Bond
Sale.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/hJ ~/rL
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
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Memorandum
TO:
FROM:
Michael C. Van Milligen, City Manager
Kenneth J. TeKippe, Finance Director ~ J-. ~~?:t.f.j<t;
SUBJECT: Proceedings to set date of sale of General Obligation Bonds
DATE:
March 14,2006
The purpose of this memorandum is to provide suggested proceedings to direct the
advertisement of General Obligation Bonds for sale, in the aggregate principal amount
of $7,305,000, and to approve the form of Notice of Bond Sale (attached). These
proceedings should be acted upon following the public hearings on the three Bond
proposals, and adoption of the resolutions taking additional action on those proposals.
The proceedings authorize the City Manager to select the date of sale, which is
currently expected to be April 3, 2006.
KJT/jmg
Attachments
cc: Barry Lindahl, Corporation Counsel
Dawn Lang, Budget Director
Jeanne Schneider, City Clerk
AHLERS ~COONEY, P.C.
ATTORNEYS AT LAW
100 COURT AVENUE' SUITE 600
OES MOINES. IOWA 50309-2231
PHONE 515-243-7611
FA)\, 515-243-2149
WWW.AHLERSLAW.COM
WILLIAM J. NOTH
WNOTHOAHLERSLAW.COM
Direct Dial,
(5151246-0332
March 13,2006
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
RE: Proceedings to set sale of Bonds
Dear Ken:
With this letter I am enclosing replacement proceedings to direct the advertisement
for sale of General Obligation Bonds in the revised aggregate principal amount of
$7,305,000, to be designated as Series 2006A, 2006B and 2006C. This item should be
presented to the City Council at its meeting on March 20, 2006, along with the other
resolutions provided to you previously for that meeting, and considered following the
adoption of the resolutions taking additional action.
The proceedings authorize the City Manager to select an appropriate date of sale,
and to notify the Clerk ofthe date so selected so that the required Notice of Bond Sale can
be published. The Notice of Bond Sale must be published at least one time in a
newspaper published in the County where the Bonds are offered for sale. The Bond sale
may be held at any time, but not less than four days following the date of the last
publication. The Notice of Bond Sale has several blank spaces (including those setting
the date and time of sale) that will need to be completed prior to publication.
An extra copy of the proceedings is enclosed to be completed as the original and
returned to us following the Council's action for our transaction of the action taken. We
also would appreciate receiving a copy of the publisher's affidavit relating to the
publication of the Notice of Bond Sale once it becomes available.
WISHARD & BAlLY. 1888; GUERNSEY & BAllY-l893, BAllY & Snpp -1901, STlPP. PERRY. BANNISTER & STARZINGER -191.6, BANNISTER. CARPENTER.
AHLERS & COONEY - 1950, AHLERS. CoONEY, DORWEILER. ALLBEE, HAYNIE & SMITH - 197'; AHLERS. COONEY, DORWE1LER. HAYNIE, SMITH & ALLBEE. P.C. - 1990
March 13,2006
Page 2
If any questions arise, please don't hesitate to call me.
Yours very truly,
~
William J. Noth
WJN:dc
encl.
cc: Tionna Pooler
Barry Lindahl
DCORNELLI48587!.! \ WPl10422071
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
The City Council of Dubuque, Iowa.
Date of Meeting:
,2006.
Time of Meeting:
o'clock .M.
Place of Meeting:
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
$2,900,000 General Obligation Bonds, Series 2006A
$910,000 General Obligation Urban Renewal Bonds, Series 2006B
$3,495,000 General Obligation Refunding Bonds, Series 2006C
.
Resolution directing the advertisement of Bonds for sale and approving
electronic bidding procedures.
Such additional matters as are set forth on the additional page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
City Clerk, Dubuque, Iowa
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
the above date. There were present Mayor
following named Council Members:
Absent:
********
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,2006
session, in the
o'clock _.M., on
, in the chair, and the
\
Council Member introduced the following Resolution
entitled "RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
GENERAL OBLIGATION BONDS, SERIES 2006A, GENERAL OBLIGATION
URBAN RENEWAL BONDS, SERIES 2006B, AND GENERAL OBLIGATION
REFUNDING BONDS, SERIES 2006C, IN THE AGGREGATE PRINCIPAL
AMOUNT OF $7,305,000, AND APPROVING ELECTRONIC BIDDING
PROCEDURES" and moved its adoption. Council Member
seconded the Resolution to adopt. The roll was called and the vote was,
AYES:
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
GENERAL OBLIGATION BONDS, SERIES 2006A, GENERAL
OBLIGATION URBAN RENEWAL BONDS, SERIES 2006B, AND
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2006C, IN
THE AGGREGATE PRINCIPAL AMOUNT OF $7,305,000, AND
APPROVING ELECTRONIC BIDDING PROCEDURES
WHEREAS, the City of Dubuque, Iowa, is in need of funds to pay costs of the
acquisition, construction, and installation of stormwater and storm sewer utility facilities
and improvements, including the 32nd Street Detention Basin construction, Bee Branch
land acquisition, North Fork Catfish Creek Ditch and Culvert construction, and other
storm sewer, stream bank and detention basin improvements, essential corporate purpose
projects, and it is deemed necessary and advisable that the City issue general obligation
bonds for said purpose in the amount of not to exceed $2,900,000 as authorized by
Section 384.25 of the City Code ofIowa; and
WHEREAS, pursuant to notice published as required by Section 384.25 this
Council has held a public meeting and hearing upon the proposal to institute proceedings
for the issuance of the above described Bonds, and all objections, if any, to such Council
action made by any resident or property owner of said City were received and considered
-2-
by the Council; and it is the decision of the Council that additional action be taken for the
issuance of said Bonds, and that such action is considered to be in the best interests of
said City and the residents thereof; and
WHEREAS, the City also is in need of funds to pay costs of aiding in the
planning, undertaking and carrying out of urban renewal project activities under the
authority of Chapter 403 of the Code of Iowa and the Urban Renewal Plan for the Greater
Downtown Urban Renewal District, including those costs associated with the
construction of improvements to the Iowa Street and Locust Street public parking ramp
facilities, and it is deemed necessary and advisable that the City issue general obligation
urban renewal bonds for said purpose to the amount of not to exceed $910,000 as
authorized by Sections 403.12 of the Code ofIowa; and
WHEREAS, pursuant to notice published as required by Sections 403.12 this
Council has held a public meeting and hearing upon the proposal to institute proceedings
for the issuance of the above described Bonds, and no petitions were filed calling for an
election thereon and all objections, if any, to such Council action made by any resident or
property owner of said City were received and considered by the Council; and it is the
decision of the Council that additional action be taken for the issuance of said Bonds, and
that such action is considered to be in the best interests of said City and the residents
thereof; and
WHEREAS, the City also is in need of funds to pay costs of refunding and
refinancing of outstanding City indebtedness, consisting of the General Obligation Bonds,
Series 2000B, dated June 1, 2000, and the General Obligation Bonds, Series 2000C, dated
November 1,2000, an essential corporate purpose project, and it is deemed necessary and
advisable that the City issue general obligation refunding bonds for said purpose to the
amount of$3,495,000 as authorized by Section 384.25 of the City Code ofIowa; and
WHEREAS, pursuant to notice published as required by Section 384.25 this
Council has held a public meeting and hearing upon the proposal to institute proceedings
for the issuance of the above described Bonds in the principal amount of not to exceed
$3,730,000, and all objections, if any, to such Council action made by any resident or
property owner of said City were received and considered by the Council; and it is the
decision of the Council that additional action be taken for the issuance of said Bonds, and
that such action is considered to be in the best interests of said City and the residents
thereof; and
WHEREAS, the Council has received information from its Financial Consultant
recommending the procedure hereinafter described for electronic, facsimile and internet
-3-
bidding to maintain the integrity and security of the competitive bidding process and to
facilitate the delivery of bids by interested parties; and
WHEREAS, the Council deems it in the best interests ofthe City and the residents
thereof to receive bids to purchase such Bonds by means of both sealed and electronic
internet communication.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That the receipt of electronic bids by facsimile machine and through the
PARIT~ competitive bidding system described in the Notice of Sale are hereby found
and determined to provide reasonable security and to maintain the integrity of the
competitive bidding process, and to facilitate the delivery of bids by interested parties in
connection with the offering of the Bonds hereinafter described at public sale.
Section 2. That the City Manager be and is hereby authorized and directed to
determine an appropriate date for sale of the Bonds and that the Clerk, upon being so
notified by the City Manager of the sale date, is hereby directed to publish notice of sale
of said Bonds at least once, the last one of which shall be not less than four clear days nor
more than twenty days before the date of the sale. Publication shall be made in the
Telegraph Herald, a legal newspaper, printed wholly in the English language, published
within the county in which the Bonds are to be offered for sale or an adjacent county.
Said notice is given pursuant to Chapter 75 of the Code oflowa, and shall state that this
Council, on the date of sale selected by the City Manager, at o'clock
P.M., will hold a meeting to receive and act upon bids for said Bonds; said notice to be in
substantially the following form:
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NOTICE OF BOND SALE
Time and Place of Sealed Bids: Sealed bids for the sale of Bonds of the City of
Dubuque, Iowa, will be received at the office of the Finance Director, City Hall, 50 West
13th Street, in the City of Dubuque, Iowa (the "Issuer") at o'clock _.M.,
on the day of , 2006. The bids will then be publicly
opened and referred for action to the meeting of the City Council in conformity with the
terms of offering.
Sale and Award: The sale and award of the Bonds will be held at the Auditorium,
Carnegie-Stout Public Library, Dubuque, Iowa, at a meeting of the City Council on the
above date at o'clock P.M.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 2006A, in the
amount of $2,900,000, to be dated the date of delivery.
GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES
2006B, in the amount of $91 0,000, to be dated the date of delivery.
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2006C, in the
amount of$3,495,000, to be dated the date of delivery.
(together, the "Bonds")
Adjustment of Principal Amount. The Issuer reserves the right to increase or
decrease the aggregate principal amount of the Series 2006C Bonds by an amount
not to exceed $235,000. Any such change will be in increments of $5,000, and
may be made in any of the maturities. The purchase price will be adjusted
proportionately to reflect any change in issue size.
Manner of Bidding: Open bids will not be received. Bids for each series of the
Bonds will be received by any of the following methods:
.
Sealed Bidding: Sealed bids may be submitted and will be received at the
office of the Finance Director, Dubuque, Iowa
-5-
. Electronic Internet Bidding: Electronic internet bids will be received at the
office of the Finance Director, Dubuque, Iowa. The bids must be submitted
through the P ARIT~ competitive bidding system.
. Electronic Facsimile Bidding: Electronic facsimile bids will be received at
the office of the Finance Director, Dubuque, Iowa (facsimile number:
563/589-0890). Electronic facsimile bids will be sealed and treated as
sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of
sealed bids will be announced. Sealed bids will then be publicly opened and announced.
Finally, electronic internet bids will be accessed and announced.
Official Statement: The Issuer has issued an Official Statement of information
pertaining to the Bonds to be offered, including a statement of the Terms of Offering and
an Official Bid Form for each series, which is incorporated by reference as a part of this
notice. The Official Statement may be obtained by request addressed to the City Clerk,
50 W. 13th Street, Dubuque, Iowa 5200 I (telephone: 563/589-4100) or the financial
advisor to the City, Public Financial Management, Inc., 2600 Grand Avenue, Des Moines,
Iowa 50312 (telephone: 515/243-2600).
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accord with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: Said Bonds will be sold subject to the opinion of Ahlers &
Cooney, P.C., Attorneys of Des Moines, Iowa, as to the legality and their opinion will be
furnished together with the printed Bonds without cost to the purchaser and all bids will
be so conditioned. Except to the extent necessary to issue their opinion as to the legality
of the Bonds, the attorneys will not examine or review or express any opinion with
respect to the accuracy or completeness of documents, materials or statements made or
furnished in connection with the sale, issuance or marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
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By order of the City Council of the City of Dubuque, Iowa.
City Clerk of the City of Dubuque, Iowa
(End of Notice)
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PASSED AND APPROVED this
day of
,2006.
Mayor
ATTEST:
Clerk
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CI G-3
9/91
CERTIFICATE
STATE OF IOWA
)
) SS
)
COUNTY OF DUBUQUE
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certifY that attached is
a true and complete copy of the portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a true and complete copy of the
action taken by said Council with respect to said matter at the meeting held on the date
indicated in the attachment, which proceedings remain in full force and effect, and have
not been amended or rescinded in any way; that meeting and all action thereat was duly
and publicly held in accordance with a notice of meeting and tentative agenda, a copy of
which was timely served on each member of the Council and posted on a bulletin board
or other prominent place easily accessible to the public and clearly designated for that
purpose at the principal office of the Council (a copy of the face sheet of said agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code ofIowa, upon reasonable advance notice to the public and media at
least twenty-four hours prior to the commencement of the meeting as required by said law
and with members of the public present in attendance; I further certifY that the individuals
named therein were on the date thereof duly and lawfully possessed of their respective
city offices as indicated therein, that no Council vacancy existed except as may be stated
in said proceedings, and that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of the City or the right
of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of said Municipality hereto affixed this
day of ,2006.
City Clerk, Dubuque, Iowa
SEAL
DCORNELL\484I n I\WPll 0422071
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CIG-18
2-91
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE)
I, the undersigned, do hereby certifY that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of
said City, I have caused a
NOTICE OF BOND SALE
of which the clipping annexed to the publisher's affidavit hereto attached is in words and
figures a correct and complete copy, to be published as required by law in the Telegraph
Herald, a legal newspaper published at least once weekly, printed wholly in the English
language, published regularly and mailed through the post office of current entry for more
than two years and which has had for more than two years a bona fide paid circulation
recognized by the postal laws of the United States, and has a general circulation in the
City, and that said Notice was published in said newspaper in all of the issues thereof
published and circulated on the following date:
,2006
WITNESS my official signature at Dubuque, Iowa, this
,2006.
day of
City Clerk
(SEAL)
DCORNELL\484126.1 \ WP\I 0422071